By: Scott Redler
Thanks God it’s Thursday! We had a decently controlled down move on Tuesday that should have given us a little more downside follow-through, BUT yesterday’s rally on NO VOLUME took back most of Tuesday’s losses. Today the futures are getting hit and we are opening under Tuesday’s lows–ARE WE HAVING FUN YET!!! Momentum players are getting killed in this market.
It seems like we will be opening near recent support in the 1,090-1,092 zone. IF THIS DOESN’T HOLD, it looks like we will be testing the break of the descending channel in the 1,080-1,085 area. That could very well happen today.
The headlines remain gross and it’s becoming increasingly hard to hold up this market with NO job creation, a continually crumbling housing market, a downgrade of Greek debt and a political agenda stuffed down America’s throat. At least Bernanke will keep rates low, because we have anything but a robust recovery underway.
Coming into today, there were some constructive tight patterns that I was somewhat excited about. *IF* today does not turn into a trend down disaster, perhaps they will remain in tact.
The Rundown:
- Apple (AAPL) was strong yesterday. Let’s see if it can regroup, and attempts to fill this down gap.
- Amazon (AMZN) closed on highs yesterday and was looking for a breakout above this lower channel. Now I’m not so sure.
- Google (GOOG) looks horrible and trades horribly. With some negative headlines out, see if it breaks $525-528, because if so, we could see much lower prices.
- Baidu (BIDU) is still holding up.
- Research in Motion (RIMM) needs more time–neither a short nor a long right now.
- Palm (PALM) preannounced earnings and yesterday had closed at around $8 after being a $14 stock not too long ago.
- Freeport McMoran (FCX) had three nice down days in a row and is opening lower. I will look here to see if I can buy it for a gap fill.
- U.S. Steel (X) is not that compelling.
- The banks were very strong yesterday. Bank of America (BAC) looks great. JP Morgan (JPM) also acted well. Goldman Sachs (GS) has some moving averages in front of it–so it should be resistance–but, if it were to blast through then the banks would be in good shape.
- Gold has pulled back the last three days and is on its fourth day down in a row.
Traders like breakouts, breakdowns, volume and follow-through. So far this year, this market has been a range bound and choppy mess. We need to be very selective and quick in order to capitalize.
